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H.B. 299

             1     

LOBBYING ACTIVITIES BY STATE AND LOCAL

             2     
GOVERNMENT AGENCIES

             3     
2011 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Christopher N. Herrod

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Lobbyist Disclosure and Regulation Act by amending provisions
             11      to require disclosure of lobbying for or by a state or local governmental entity.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    requires a principal that is a governmental entity to disclose the amount of
             16      compensation paid by the principal to a lobbyist;
             17          .    requires a principal that is an association of which a governmental entity is a
             18      member to disclose:
             19              .    the amount paid by the governmental entity to be a member of the association;
             20      and
             21              .    the amount of compensation paid by the principal to a lobbyist;
             22          .    requires a lobbyist for a principal that is a governmental entity to disclose the
             23      lobbyist's compensation;
             24          .    requires a government officer who lobbies to file a report with the lieutenant
             25      governor on a quarterly basis that includes the number of hours the government
             26      officer lobbied and the value of those hours; and
             27          .    makes technical changes.


             28      Money Appropriated in this Bill:
             29          None
             30      Other Special Clauses:
             31          None
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          36-11-102, as last amended by Laws of Utah 2010, Chapter 325
             35          36-11-103, as last amended by Laws of Utah 2010, Chapter 325
             36          36-11-201, as last amended by Laws of Utah 2010, Chapter 325
             37     
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 36-11-102 is amended to read:
             40           36-11-102. Definitions.
             41          As used in this chapter:
             42          (1) "Aggregate daily expenditures" means:
             43          (a) for a single lobbyist, principal, or government officer, the total of all expenditures
             44      made within a calendar day by the lobbyist, principal, or government officer for the benefit of
             45      an individual public official;
             46          (b) for an expenditure made by a member of a lobbyist group, the total of all
             47      expenditures made within a calendar day by every member of the lobbyist group for the benefit
             48      of an individual public official; or
             49          (c) for a multiclient lobbyist, the total of all expenditures made by the multiclient
             50      lobbyist within a calendar day for the benefit of an individual public official, regardless of
             51      whether the expenditures were attributed to different clients.
             52          (2) "Approved meeting or activity" means a meeting or activity:
             53          (a) to which a legislator is invited; and
             54          (b) attendance at which is approved by:
             55          (i) the speaker of the House of Representatives, if the public official is a member of the
             56      House of Representatives; or
             57          (ii) the president of the Senate, if the public official is a member of the Senate.
             58          (3) "Capitol hill" means the grounds, monuments, parking areas, and buildings within


             59      the area bounded by 300 North Street, Columbus Street, 500 North Street, and East Capitol
             60      Boulevard in Salt Lake City.
             61          [(3)] (4) (a) "Compensation" means anything of economic value, however designated,
             62      that is paid, loaned, granted, given, donated, or transferred to an individual for the provision of
             63      services or ownership before any withholding required by federal or state law.
             64          (b) "Compensation" includes:
             65          (i) a salary or commission;
             66          (ii) a bonus;
             67          (iii) a benefit;
             68          (iv) a contribution to a retirement program or account;
             69          (v) a payment includable in gross income, as defined in Section 62, Internal Revenue
             70      Code, and subject to Social Security deductions, including a payment in excess of the
             71      maximum amount subject to deduction under Social Security law;
             72          (vi) an amount that the individual authorizes to be deducted or reduced for salary
             73      deferral or other benefits authorized by federal law; or
             74          (vii) income based on an individual's ownership interest.
             75          [(4)] (5) "Compensation payor" means a person who pays compensation to a public
             76      official in the ordinary course of business:
             77          (a) because of the public official's ownership interest in the compensation payor; or
             78          (b) for services rendered by the public official on behalf of the compensation payor.
             79          [(5)] (6) "Executive action" means:
             80          (a) a nomination or appointment by the governor;
             81          (b) the proposal, drafting, amendment, enactment, or defeat by a state agency of a rule
             82      made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             83          (c) agency ratemaking proceedings; or
             84          (d) an adjudicative proceeding of a state agency.
             85          [(6)] (7) (a) "Expenditure" means any of the items listed in this Subsection [(6)] (7)(a)
             86      when given to or for the benefit of a public official unless consideration of equal or greater
             87      value is received:
             88          (i) a purchase, payment, or distribution;
             89          (ii) a loan, gift, or advance;


             90          (iii) a deposit, subscription, or forbearance;
             91          (iv) services or goods;
             92          (v) money;
             93          (vi) real property;
             94          (vii) a ticket or admission to a sporting, recreational, or artistic event; or
             95          (viii) a contract, promise, or agreement, whether or not legally enforceable, to provide
             96      any item listed in Subsections [(6)] (7)(a)(i) through (vii).
             97          (b) "Expenditure" does not mean:
             98          (i) a commercially reasonable loan made in the ordinary course of business;
             99          (ii) a campaign contribution reported in accordance with Title 20A, Chapter 11,
             100      Campaign and Financial Reporting Requirements;
             101          (iii) printed informational material that is related to the performance of the recipient's
             102      official duties;
             103          (iv) a devise or inheritance;
             104          (v) any item listed in Subsection [(6)] (7)(a) if:
             105          (A) given by a relative;
             106          (B) given by a compensation payor for a purpose solely unrelated to the public
             107      official's position as a public official; or
             108          (C) (I) the item has a value of less than $10; and
             109          (II) the aggregate daily expenditures do not exceed $10;
             110          (vi) food or beverage that is provided at an event to which the following are invited:
             111          (A) all members of the Legislature;
             112          (B) all members of a standing or interim committee;
             113          (C) all members of an official legislative task force;
             114          (D) all members of a party caucus; or
             115          (E) all members of a group described in Subsections [(6)] (7)(b)(vi)(A) through (D)
             116      who are attending a meeting of a national organization whose primary purpose is addressing
             117      general legislative policy;
             118          (vii) food or beverage that is provided at an event to a public official who is:
             119          (A) giving a speech at the event;
             120          (B) participating in a panel discussion at the event; or


             121          (C) presenting or receiving an award at the event;
             122          (viii) a plaque, commendation, or award presented in public and having a cash value
             123      not exceeding $50;
             124          (ix) admission to or attendance at an event, the primary purpose of which is:
             125          (A) to solicit contributions reportable under:
             126          (I) Title 20A, Chapter 11, Campaign and Financial Reporting Requirements; or
             127          (II) 2 U.S.C. Sec. 434; or
             128          (B) charitable solicitation, as defined in Section 13-22-2 ;
             129          (x) travel to, lodging at, food or beverage served at, and admission to an approved
             130      meeting or activity; or
             131          (xi) sponsorship of an official event or official entertainment of an approved meeting
             132      or activity.
             133          [(7)] (8) (a) "Government officer" means:
             134          (i) an individual elected to a position in state or local government, when acting within
             135      the government officer's official capacity; or
             136          (ii) an individual appointed to or employed in a full-time position by state or local
             137      government, when acting within the scope of the individual's employment.
             138          (b) "Government officer" does not mean a member of the legislative branch of state
             139      government.
             140          (9) "Governmental entity" means:
             141          (a) an entity that is part of the executive or judicial branch of state government; or
             142          (b) a political subdivision or an entity that is part of a political subdivision.
             143          [(8)] (10) "Immediate family" means:
             144          (a) a spouse;
             145          (b) a child residing in the household; or
             146          (c) an individual claimed as a dependent for tax purposes.
             147          [(9)] (11) "Legislative action" means:
             148          (a) a bill, resolution, amendment, nomination, veto override, or other matter pending or
             149      proposed in either house of the Legislature or its committees or requested by a legislator; and
             150          (b) the action of the governor in approving or vetoing legislation.
             151          [(10)] (12) "Lobbying" means communicating with a public official for the purpose of


             152      influencing the passage, defeat, amendment, or postponement of legislative or executive action.
             153          [(11)] (13) (a) "Lobbyist" means:
             154          (i) an individual who is employed by a principal; or
             155          (ii) an individual who contracts for economic consideration, other than reimbursement
             156      for reasonable travel expenses, with a principal to lobby a public official.
             157          (b) "Lobbyist" does not include:
             158          (i) a government officer;
             159          (ii) a member or employee of the legislative branch of state government;
             160          (iii) a person while appearing at, or providing written comments to, a hearing
             161      conducted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act or
             162      Title 63G, Chapter 4, Administrative Procedures Act;
             163          (iv) a person participating on or appearing before an advisory or study task force,
             164      commission, board, or committee, constituted by the Legislature or any agency or department
             165      of state government, except legislative standing, appropriation, or interim committees;
             166          (v) a representative of a political party;
             167          (vi) an individual representing a bona fide church solely for the purpose of protecting
             168      the right to practice the religious doctrines of the church, unless the individual or church makes
             169      an expenditure that confers a benefit on a public official;
             170          (vii) a newspaper, television station or network, radio station or network, periodical of
             171      general circulation, or book publisher for the purpose of publishing news items, editorials,
             172      other comments, or paid advertisements that directly or indirectly urge legislative or executive
             173      action; or
             174          (viii) an individual who appears on the individual's own behalf before a committee of
             175      the Legislature or an agency of the executive branch of state government solely for the purpose
             176      of testifying in support of or in opposition to legislative or executive action.
             177          [(12)] (14) "Lobbyist group" means two or more lobbyists, principals, government
             178      officers, or any combination of lobbyists, principals, and officers who each contribute a portion
             179      of an expenditure made to benefit a public official or member of the public official's immediate
             180      family.
             181          [(13)] (15) "Multiclient lobbyist" means a single lobbyist, principal, or government
             182      officer who represents two or more clients and divides the aggregate daily expenditure made to


             183      benefit a public official or member of the public official's immediate family between two or
             184      more of those clients.
             185          [(14)] (16) "Principal" means a person that employs an individual to perform lobbying,
             186      either as an employee or as an independent contractor.
             187          [(15)] (17) "Public official" means:
             188          (a) (i) a member of the Legislature;
             189          (ii) an individual elected to a position in the executive branch of state government; or
             190          (iii) an individual appointed to or employed in a position in the executive or legislative
             191      branch of state government if that individual:
             192          (A) occupies a policymaking position or makes purchasing or contracting decisions;
             193          (B) drafts legislation or makes rules;
             194          (C) determines rates or fees; or
             195          (D) makes adjudicative decisions; or
             196          (b) an immediate family member of a person described in Subsection [(15)] (17)(a).
             197          [(16)] (18) "Public official type" means a notation to identify whether a public official
             198      is:
             199          (a) (i) a member of the Legislature;
             200          (ii) an individual elected to a position in the executive branch of state government;
             201          (iii) an individual appointed to or employed in a position in the legislative branch of
             202      state government who meets the definition of public official under Subsection [(15)]
             203      (17)(a)(iii); or
             204          (iv) an individual appointed to or employed in a position in the executive branch of
             205      state government who meets the definition of public official under Subsection [(15)]
             206      (17)(a)(iii); or
             207          (b) an immediate family member of a person described in Subsection [(15)] (17)(b).
             208          [(17)] (19) "Quarterly reporting period" means the three-month period covered by each
             209      financial report required under Subsection 36-11-201 (2)(a).
             210          [(18)] (20) "Related person" means a person, agent, or employee who knowingly and
             211      intentionally assists a lobbyist, principal, or government officer in lobbying.
             212          [(19)] (21) "Relative" means a spouse, child, parent, grandparent, grandchild, brother,
             213      sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or


             214      spouse of any of these individuals.
             215          Section 2. Section 36-11-103 is amended to read:
             216           36-11-103. Licensing requirements.
             217          (1) (a) Before engaging in any lobbying, a lobbyist shall obtain a license from the
             218      lieutenant governor by completing the form required by this section.
             219          (b) The lieutenant governor shall issue licenses to qualified lobbyists.
             220          (c) The lieutenant governor shall prepare a Lobbyist License Application Form that
             221      includes:
             222          (i) a place for the lobbyist's name and business address;
             223          (ii) a place for the following information for each principal for whom the lobbyist
             224      works or is hired as an independent contractor:
             225          (A) the principal's name;
             226          (B) the principal's business address;
             227          (C) the name of each public official that the principal employs and the nature of the
             228      employment with the public official; [and]
             229          (D) the general purposes, interests, and nature of the principal; and
             230          (E) if the principal is a governmental entity, the amount of compensation received
             231      annually by the lobbyist;
             232          (iii) a place for the name and address of the person who paid or will pay the lobbyist's
             233      registration fee, if the fee is not paid by the lobbyist;
             234          (iv) a place for the lobbyist to disclose:
             235          (A) any elected or appointed position that the lobbyist holds in state or local
             236      government, if any; and
             237          (B) the name of each public official that the lobbyist employs and the nature of the
             238      employment with the public official, if any;
             239          (v) a place for the lobbyist to disclose the types of expenditures for which the lobbyist
             240      will be reimbursed; and
             241          (vi) a certification to be signed by the lobbyist that certifies that the information
             242      provided in the form is true, accurate, and complete to the best of the lobbyist's knowledge and
             243      belief.
             244          (2) Each lobbyist who obtains a license under this section shall update the licensure


             245      information when the lobbyist accepts employment for lobbying by a new client.
             246          (3) (a) Except as provided in Subsection (4), the lieutenant governor shall grant a
             247      lobbying license to an applicant who:
             248          (i) files an application with the lieutenant governor that contains the information
             249      required by this section; and
             250          (ii) pays a $100 filing fee.
             251          (b) A license entitles a person to serve as a lobbyist on behalf of one or more principals
             252      and expires on December 31 of each even-numbered year.
             253          (4) (a) The lieutenant governor may disapprove an application for a lobbying license:
             254          (i) if the applicant has been convicted of violating Section 76-8-103 , 76-8-107 ,
             255      76-8-108 , or 76-8-303 within five years before the date of the lobbying license application;
             256          (ii) if the applicant has been convicted of violating Section 76-8-104 or 76-8-304
             257      within one year before the date of the lobbying license application;
             258          (iii) for the term of any suspension imposed under Section 36-11-401 ;
             259          (iv) if, within one year before the date of the lobbying license application, the applicant
             260      has been found to have willingly and knowingly:
             261          (A) violated this section or Section 36-11-201 , 36-11-301 , 36-11-302 , 36-11-303 ,
             262      36-11-304 , 36-11-305 , or 36-11-403 ; or
             263          (B) filed a document required by this chapter that the lobbyist knew contained
             264      materially false information or omitted material information; or
             265          (v) if the applicant is prohibited from becoming a lobbyist under Title 67, Chapter 24,
             266      Lobbying Restrictions Act.
             267          (b) An applicant may appeal the disapproval in accordance with the procedures
             268      established by the lieutenant governor under this chapter and Title 63G, Chapter 4,
             269      Administrative Procedures Act.
             270          (5) The lieutenant governor shall deposit license fees in the General Fund.
             271          (6) A principal need not obtain a license under this section, but [if the principal makes
             272      expenditures to benefit a public official without using a lobbyist as an agent to confer those
             273      benefits, the principal shall disclose those expenditures] shall file a financial report as required
             274      by Section 36-11-201 .
             275          (7) Government officers need not obtain a license under this section, but shall [disclose


             276      any expenditures made to benefit public officials] file a financial report as required by Section
             277      36-11-201 .
             278          (8) Surrender, cancellation, or expiration of a lobbyist license does not absolve the
             279      lobbyist of the duty to file the financial reports if the lobbyist is otherwise required to file the
             280      reports by Section 36-11-201 .
             281          Section 3. Section 36-11-201 is amended to read:
             282           36-11-201. Lobbyist, principal, and government officer financial reporting
             283      requirements -- Prohibition for related person to make expenditures.
             284          (1) (a) (i) A lobbyist shall file financial reports with the lieutenant governor on or
             285      before the due dates specified in Subsection (2).
             286          (ii) If a lobbyist has not made an expenditure during the quarterly reporting period, the
             287      lobbyist shall file a financial report listing the amount of expenditures as "none."
             288          (b) A [government officer or] principal [that makes an expenditure during any of the
             289      quarterly reporting periods under Subsection (2)(a)] shall file a financial report with the
             290      lieutenant governor on or before the date that a report for that quarter is due[.], if during any of
             291      the quarterly reporting periods under Subsection (2)(a), the principal:
             292          (i) makes an expenditure without using a lobbyist as an agent to confer the expenditure;
             293          (ii) (A) is an association of which a governmental entity is a member; and
             294          (B) pays compensation to a lobbyist; or
             295          (iii) (A) is a governmental entity; and
             296          (B) pays compensation to a lobbyist.
             297          (c) A government officer who makes an expenditure or engages in lobbying shall file a
             298      financial report with the lieutenant governor on or before the date that a financial report is due
             299      for the quarter in which the expenditure or lobbying occurs.
             300          (2) (a) A financial report is due quarterly on the following dates:
             301          (i) April 10, for the period of January 1 through March 31;
             302          (ii) July 10, for the period of April 1 through June 30;
             303          (iii) October 10, for the period of July 1 through September 30; and
             304          (iv) January 10, for the period of October 1 through December 31 of the previous year.
             305          (b) If the due date for a financial report falls on a Saturday, Sunday, or legal holiday,
             306      the report is due on the next succeeding business day.


             307          (c) A financial report is timely filed if it is filed electronically before the close of
             308      regular office hours on or before the due date.
             309          (3) A financial report shall contain:
             310          (a) the total amount of expenditures made to benefit any public official during the
             311      quarterly reporting period;
             312          (b) the total amount of expenditures made, by the type of public official, during the
             313      quarterly reporting period;
             314          (c) for the financial report due on January 10:
             315          (i) the total amount of expenditures made to benefit any public official during the last
             316      calendar year; and
             317          (ii) the total amount of expenditures made, by the type of public official, during the last
             318      calendar year;
             319          (d) a disclosure of each expenditure made during the quarterly reporting period to
             320      reimburse or pay for travel or lodging for a public official, including:
             321          (i) each travel destination and each lodging location;
             322          (ii) the name of each public official who benefitted from the expenditure on travel or
             323      lodging;
             324          (iii) the public official type of each public official named;
             325          (iv) for each public official named, a listing of the amount and purpose of each
             326      expenditure made for travel or lodging; and
             327          (v) the total amount of expenditures listed under Subsection (3)(d)(iv);
             328          (e) a disclosure of aggregate daily expenditures greater than $10 made during the
             329      quarterly reporting period including:
             330          (i) the date and purpose of the expenditure;
             331          (ii) the location of the expenditure;
             332          (iii) the name of any public official benefitted by the expenditure;
             333          (iv) the type of the public official benefitted by the expenditure; and
             334          (v) the total monetary worth of the benefit that the expenditure conferred on any public
             335      official;
             336          (f) for each public official who was employed by the lobbyist, principal, or government
             337      officer, a list that provides:


             338          (i) the name of the public official; and
             339          (ii) the nature of the employment with the public official;
             340          (g) each bill or resolution, by number and short title, on behalf of which the lobbyist,
             341      principal, or government officer made an expenditure to a public official;
             342          (h) a description of each executive action on behalf of which the lobbyist, principal, or
             343      government officer made an expenditure to a public official;
             344          (i) for each government officer:
             345          (i) the number of hours the government officer spent:
             346          (A) engaged in lobbying;
             347          (B) on capitol hill for the purpose of lobbying; and
             348          (C) traveling to and from capitol hill for the purpose of lobbying; and
             349          (ii) the cost of lobbying which is an amount equal to the product of:
             350          (A) the number of the hours described in Subsection (3)(i)(i); and
             351          (B) the hourly rate of pay for the government officer;
             352          (j) for each principal described in Subsection (1)(b)(ii):
             353          (i) (A) the amount a governmental entity pays to be a member; and
             354          (B) the name of each governmental entity member; and
             355          (ii) the amount of compensation the principal pays to a lobbyist who is employed by
             356      the principal or with whom the principal has a contract;
             357          (k) for each principal described in Subsection (1)(b)(iii), the amount of compensation
             358      the principal pays to a lobbyist with whom the principal has a contract;
             359          [(i)] (l) the general purposes, interests, and nature of the entities that the lobbyist,
             360      principal, or government officer filing the report represents; and
             361          [(j)] (m) for a lobbyist, a certification that the information provided in the report is true,
             362      accurate, and complete to the lobbyist's best knowledge and belief.
             363          (4) A related person may not, while assisting a lobbyist, principal, or government
             364      officer in lobbying, make an expenditure that benefits a public official under circumstances that
             365      would otherwise fall within the disclosure requirements of this chapter if the expenditure was
             366      made by the lobbyist, principal, or government officer.
             367          (5) The lieutenant governor shall:
             368          (a) (i) develop a preprinted form for a financial report required by this section; and


             369          (ii) make copies of the form available to a lobbyist, principal, or government officer
             370      who requests a form; and
             371          (b) provide a reporting system that allows a lobbyist, principal, or government officer
             372      to submit a financial report required by this chapter via the Internet.
             373          (6) (a) A lobbyist and a principal shall continue to file a financial report required by
             374      this section until the lobbyist or principal files a statement with the lieutenant governor that:
             375          (i) states:
             376          (A) for a lobbyist, that the lobbyist has ceased lobbying activities; or
             377          (B) for a principal, that the principal no longer employs an individual as a lobbyist;
             378          (ii) in the case of a lobbyist, states that the lobbyist is surrendering the lobbyist's
             379      license;
             380          (iii) contains a listing, as required by this section, of all previously unreported
             381      expenditures that have been made through the date of the statement; and
             382          (iv) states that the lobbyist or principal will not make any additional expenditure that is
             383      not disclosed on the statement unless the lobbyist or principal complies with the disclosure and
             384      licensing requirements of this chapter.
             385          (b) A person that fails to renew the lobbyist's license or otherwise ceases to be licensed
             386      is required to file a financial report quarterly until the person files the statement required by
             387      Subsection (6)(a).




Legislative Review Note
    as of 2-16-11 1:46 PM


Office of Legislative Research and General Counsel


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